The European Parliament on Tuesday approved a proposal to include airlines in the bloc’s strategy to cut carbon dioxide emissions – a move that could dramatically raise the cost of air travel and provoke a dispute with the United States.

Under the plan, all flights starting or landing in the EU, including intercontinental flights, will be included in the EU’s emission trading system from 2012.

Pollution permits granted to airlines initially would be capped at 97 per cent of their average emissions for 2004-2006.

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From 2013, the cap would drop to 95 per cent. Eighty-five per cent of those emission certificates will be allocated for free, while the rest will be auctioned.

Airlines that want to fly – and pollute – more will buy more permits But they are likely to pass the cost of the permit on to passengers.

The United States believes the Europeans have no right to force airlines using European air space to participate in their emissions caps program and prefers a voluntary agreement among nations.